GAP INSURANCE: THE ULTIMATE PEACE OF MIND ‘ HOW GAP INSURANCE PROTECTS MORE THAN JUST YOUR CAR
Buying a car is just one leg of your automotive journey, and Sherman Chevrolet Cadillac strives to ensure that every part of the process is easy to navigate. Our job isn’t done once you drive your car off the lot, either. We want to know that you’re supported and protected on the road as well, which is why strongly recommend the peace of mind provided by gap insurance.
What is gap insurance?
If you’re involved in an accident, gap insurance covers the difference between your vehicle’s current value and what you still owe on it. A standard insurance policy, on the other hand, only covers the cost of the car at the time of the claim.
What does this mean for you?
A car starts to depreciate or lose value the second you drive it off the lot. All your monthly payments go towards the car’s initial value despite that depreciation. This can become complicated if you’re involved in an accident.
A standard insurance policy will only cover what your car is worth at the time of the accident, even though you may owe a larger amount. This leaves you on the hook for more money than what your insurance company pays out. That’s where gap insurance comes in. It pays this difference, which ensures you won’t be stuck making payments on a car you can’t drive.
Is gap insurance right for you?
There are a handful of circumstances for which gap insurance is a great option. If you’ve made less than a 20% down payment or will be paying off your car for more than 60 months, gap insurance is a smart buy. Once you’ve been making payments for that long, your insurance payout from a major wreck will be a much smaller portion of what your vehicle’s initial value.
Gap insurance is also a good idea if you’ve purchased a car that depreciates quicker than the industry average or if you’re leasing. Bottom line, unless you’ve bought your car outright, gap insurance is a good call.
At Sherman Chevrolet Cadillac, we want what’s best for our customers, and we firmly believe that gap insurance is the way to go.
Sherman Chevrolet Cadillac is a community-oriented dealer proudly serving the Dallas – Fort Worth area – Whitesboro, Denison, McKinney, Pottsboro, Paris and Bonham, TX, as well as the neighboring Texoma communities of Durant, Ada, and Ardmore, OK.